What Type of Industry Is a Car Wash? Overview of the Car Wash Industry

The car wash industry includes about 160,000 professional car wash locations across North America and Europe. It is tasked with cleaning, washing and waxing vehicles like cars, trucks, vans, and trailers. This industry relies on discretionary spending and is sensitive to changes in household finances.

There are approximately a quarter of car washes that compete with six to 10 other similar businesses. Competition has increased in recent years. The industry’s growth makes car washes more convenient to find.

An automatic or touchless car wash customer typically waits about 15 minutes for their car to be washed. This allows time to sell them other things.

The average monthly revenue per bay in a self-serve car wash is nearly $1,500. An in-bay automatic car wash generates $139,000 of revenue yearly and provides a $86,531 yearly profit.

Remember that vehicles may only be washed at a commercial car wash during Stage 1 Restrictions, not at home. Consider using a waterless cleaning product.

The professional car wash industry employs over 220,000 employees at retail stores and over 15,000 at equipment, chemical, and service companies. Though substantial, vehicle washing also occurs at dealerships, as part of fleet management, and in specialized environments.

The car wash market will reach $46.73 billion by 2030, growing at 3.1% fueled by demand for professional cleaning, new cars, tech upgrades, and the eco-conscious wave. The USA dominates the industry.

About 8,000 UK hand car washes engage in illegal activities, putting workers and the environment at risk. Owners in South Africa need over $10,400 for signage, equipment, recruited staff, and customer care. Asia-Pacific leads growth with China, India, Thailand, and Indonesia becoming prominent hubs.

Running a car wash is a great business closer to perfect than you’d think. Like vending machines, car washes can be lucrative cash cows. The upfront and running costs are reasonably predictable.

North America, Europe, and Australia are mature markets for on-demand car washing. Conveyor car washes generate the most US revenue but take time, which apps solve. Apps better organize the industry, attract customers, and address issues of expensive, time-consuming washes.

It will likely cost $100,000-400,000 to start up a car wash business depending on type. Revenue is determined by repeat customers and additional services. Car wash growth demands are increasing but 20% of small businesses fail within one year.

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